Pet Care Services
Brief Excerpt from Industry Overview Chapter:
Companies in this industry provide grooming, specialized training, and boarding services for companion animals. Major US companies include PetSmart, PETCO Animal Supplies, and Best Friends Pet Care.
Demand is driven mainly by the number of cats and dogs kept as pets, which is affected by demographics and economic conditions. The profitability of an individual pet care company depends on marketing skills, reputation, and the range of services offered. Large companies enjoy economies of scale in marketing as well as better access to capital to invest in boarding and grooming equipment and in training programs. Small practices can compete effectively by specializing in particular animals or types of grooming or training, or by serving an exclusive area.
PRODUCTS, OPERATIONS & TECHNOLOGY
US consumers spent more than $65 billion on their pets in 2016, according to the American Pet Products Association (APPA), fueled by services like grooming, boarding, and training. Companies that provide pet care services generate 68% of revenue from pet boarding and grooming services. Pet sitting and dog walking accounts for 8% of industry revenue while merchandise sales bring in 4%. Training services, which exclude animals that race, account for 7% of revenue. PetSmart and PETCO operate the most grooming salons in the country. Pet care insurance is popular among small businesses to help protect against negligence.